Abu Dhabi Investment Authority to invest Rs 665 cr in Aditya Birla Health Insurance

A wholly-owned subsidiary of Abu Dhabi Investment Authority will invest Rs 665 crore in Aditya Birla Health Insurance. The health insurance company announced that the board of directors of Aditya Birla Capital Limited approved the proposal for the primary capital infusion. The transaction values Aditya Birla Health Insurance at Rs 6,650 crore. 

The completion of the deal is subject to statutory and regulatory approvals, including from the Insurance Regulatory and Development Authority of India (IRDAI). 

Aditya Birla Health Insurance is a 51:49 joint venture between Aditya Birla Capital and Momentum Metropolitan Strategic Investments (Pty) Ltd, a wholly owned subsidiary of South African based Momentum Metropolitan Holdings Limited.

Once the transaction is complete, ADIA will own a 9.99 per cent stake, Aditya Birla Capital Limited 45.91 per cent, and Momentum Metropolitan Holdings 44.10 per cent stake in Aditya Birla Health Insurance.

The health insurance company plans to use the capital to drive its growth in the health insurance market in India.  

Vishakha Mulye, Chief Executive Officer of ABCL said that health has become a key concern for all in recent times. “With its differentiated Health - First model, ABHI is well positioned to address this concern, while also protecting health through insurance,” he said.

Mayank Bathwal, CEO of Aditya Birla Health Insurance said, “This partnership with ADIA strengthens our resolve to further expand the company’s ‘Health-First’ proposition, as we empower our customers to lead a healthy life. We remain committed to this promise and have reimagined our business model and customer engagement accordingly, by creating differentiated products, a digital health ecosystem and a large distribution presence across the country.”

Hamad Shahwan Al Dhaheri, Executive Director of the Private Equities Department at ADIA, said that there is significant potential in the country’s health insurance sector as penetration level increases, driven by higher awareness and broader economic growth. 

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